Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank the two presenters. I will make two points. First, I am slightly concerned that Dr. Collins's method of calculating a living wage seems to exclude the role of the State in terms of either taxation or transfer in that it appears to place it all on the shoulders of the employer. In the context of what Mr. Seamus Coffey had to say to us before the representatives came in - I do not know if they were here for it - the EUROSTAT figures show that the wage share in Ireland is only slightly below the EU average for the wholesale and retail trades, for accommodation and food service activities and for administrative support service activities, which are areas, I assume, in which one would be assisted by a living wage, so we are not necessarily way off the EU average in terms of it.

Second, Dr. Collins also raised the idea that local authorities should pay the living wage as a type of experiment, but that gets paid for by the same people he wants to pay for the minimum wage, namely, ratepayers, who are already getting nothing for paying their rates. That will increase their cost base.

There seems to be an inherent contradiction in Mr. Fergal O'Brien's presentation.

According to a press statement on the IBEC website, the majority of companies intend to introduce pay increases in 2015. It also refers to a spectacular economic recovery in 2014 and indicates that 49% of companies awarded pay increases to staff in 2014, with this figure set to increase to 51% this year. Mr. Mark Fielding of ISME disputed these figures. How many workers in IBEC member companies are on the minimum wage?

Given that the figures presented by Mr. Seamus Coffey show that the wage share is lowest in industries that are dominated by foreign owned companies, in particular US multinational firms, in other words, IBEC members, is it not slightly contradictory, if not hypocritical, for IBEC to oppose an increase in the minimum wage when its own members are awarding pay increases to those on substantially higher incomes and are doing so from a lower base?

A single person on the minimum wage with no children or debt receives €16,960 per annum. IBEC speaks regularly about input costs in the economy, for example, energy and waste costs, being poor. The same applies to individuals. While purchasing power here is in line with the European average or perhaps a little higher according to EUROSTAT, one is left with very little from €16,960 when one subtracts from it rent, travel and food costs. Given that IBEC members paid staff on higher incomes an increase in the past couple of years, is it not wrong that the organisation advocates that those on the lowest incomes who serve its members on higher incomes should not receive any increase in pay?

Mr. Fielding made the colourful remark that IBEC had sold out small business by supporting the minimum wage. I ask the IBEC representatives to respond to his comment.